Netflix (NFLX) Declined in Q3 on Profit Taking

3 days ago 6

Soumya Eswaran

Thu, November 27, 2025 astatine 7:08 AM CST 3 min read

Sands Capital, an concern absorption company, released its “Sands Capital Select Growth Strategy” Q3 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. U.S. large-cap maturation equities continued to retrieve from a crisp sell-off successful aboriginal April. Strong firm earnings, capitalist enthusiasm astir artificial quality (AI), and increasing expectations for Federal Reserve argumentation easing drove the robust gains. The portfolio returned 6.3% (net) successful the quarter, compared to the benchmark's 10.5% gain. You tin cheque the fund’s apical 5 holdings to cognize much astir its champion picks for 2025.

In its third-quarter 2025 capitalist letter, Sands Capital Select Growth Strategy highlighted stocks specified arsenic Netflix, Inc. (NASDAQ:NFLX). Incorporated successful 1997, Netflix, Inc. (NASDAQ:NFLX) is an amusement services provider. The one-month instrumentality of Netflix, Inc. (NASDAQ:NFLX) was -3.55%, and its shares gained 20.98% of their worth implicit the past 52 weeks. On November 26, 2025, Netflix, Inc. (NASDAQ:NFLX) banal closed astatine $106.14 per share, with a marketplace capitalization of $449.749 billion.

Sands Capital Select Growth Strategy stated the pursuing regarding Netflix, Inc. (NASDAQ:NFLX) successful its 3rd 4th 2025 capitalist letter:

"Netflix, Inc. (NASDAQ:NFLX) is the world’s largest shaper and distributor of streaming video content, based connected contented concern and subscriber count. Shares declined successful the 3rd 4th aft beardown first-half show successful 2025 pushed its guardant net aggregate to the highest level since 2022, starring to immoderate profit-taking. Fundamentally, the concern continues to execute well. Netflix raised full-year gross guidance by $700 cardinal astatine the precocious end, citing stronger subscriber growth, improved advertisement performance, and a weaker U.S. dollar. It besides raised operating borderline guidance by 1 percent constituent to 30 percent. We presumption this arsenic conservative, fixed the deficiency of immoderate important summation successful operating expenses. The guidance implies a slowdown successful borderline enlargement for the 2nd fractional of 2025, which contrasts with implicit 6 percent points of enlargement successful 2024 and much than 5 percent points successful 2025’s archetypal half. Our proprietary survey results results proceed to validate our thesis, with Netflix starring successful engagement, retention, contented quality, and perceived value."

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